I think the key is what type of book you're talking about. If it's an informative book, I'd prefer the iPad. If you're looking to read novels on some type of device--that deep, immersive reading with minimal distractions--and paper isn't a desirable option--Kindle or something with e-ink seems like the best choice. One thing paper can't match, of course, is the ability to download practically any novel you care to read instantly--and be able to search, save your place, make notes, etc.

I just saw a bunch of stuff about Google Editions, and I'm pretty stoked about that. Ebooks seem like a cheesy alternative for authors who can't get published "for real" right now, but that could very well change in the near future. I particularly like the idea of getting a free ebook when you buy a printed book. That seems a great way to go for now; get people accustomed to ebooks that way and gradually wean them off paper.